Bonus Plan

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Bonus Plan

The policies a company follows in paying out bonuses. The bonus plan includes details on eligibility, the circumstances under which bonuses are paid and how amounts are determined. For example, a bonus plan may state that employees are eligible for a bonus after a certain number of months with the company when the company collects more than a certain percentage of its accounts receivable.
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UBS AG (NYSE: UBS) is facing tough opposition to its bonus plans.
Employees are rewarded with competitive salaries, company paid healthcare, three weeks of paid leave, bonus plans, professional training and company sponsored lunches and other periodic team-building events.
Consequently, employers with discretionary bonus plans that restrict employees' right to receive a bonus may not be able to recognize the liability and take a deduction for bonus payments until the year after the related services are performed.
However, as discussed below, if not properly designed, bonus plans can undermine the reporting of safety concerns, and even lead to an increase in unsafe behaviors.
The pay consultant went on to say that bonus plans should ultimately be developed in the context of a broader compensation philosophy and strategy that seeks to create line of site between a company's vision, its business plan and strategy, the roles and expectations associated with those elements and the financial rewards attached to meeting established success standards.
In addition, Early Bonus Plans 15 and 16 offer investors a defensive bonus option, which can be triggered even when the FTSE 100 Index falls (by up to 10%).
As a result of increased regulation, heightened shareholder scrutiny and board activism, the percentage of REITs with annual cash bonus plans solely based on subjective criteria (as opposed to formulaic/objective criteria) decreased significantly from 2008 (46%) to 2011 (37%).
The reports come as Britain's biggest banks are due to unveil their bonus plans and annual results.
The requirement that an employee actually be employed on the date a bonus is paid is not a provision that many employers want to remove from their bonus plans. Rev.
On their behalf we assess executives' pay and bonus plans to see they are good governance, and we operate a traffic-light system.
Public companies typically structure their annual and three-year bonus plans for their "top-five" executives to qualify as "performance-based compensation" under the $1 million deduction cap of Code section 162(m).
Lloyds has already revealed its bonus plans, with outgoing chief executive Eric Daniels being awarded pounds 1.45 million for 2010.